Mumbai (Agencies): Reliance Mutual Fund on Wednesday launched arguably the country's first gold fund as the largest domestic fund house expects this market to topple the equity mutual funds market within the next three years.

The open-ended fund, which is different from gold ETFs (exchange traded funds) that require subscribers to have a demat account, offers investors the option to invest as little as Rs 100 per month, Reliance Capital Asset Management Chief Executive Sundeep Sikka told newspersons here.

The current gold ETF market is only Rs 3,350 crore, he said, adding the fund will be invested in the domestic ETF, mostly in Reliance's own gold ETF index.

"We expect this gold investment industry to surpass equity MFs in the next three years. We are convinced that this product will offer a simple, affordable and investor-friendly solution for investing in gold."

He further said the biggest advantage is that the product offers this gold-crazy nation to remain invested in the yellow metal without any physical risks to one's investment as well as with 100 per cent certified purity.

The company said the fund will enable investments in gold without any locker or demat account -  a first.

Sikka said the gold investment opportunity in the country is not optimally tapped and the new product will offer a simple, affordable and investor-friendly solution for investing in gold to the masses.